Retention money - a necessary evil or a pernicious device?
Maycock, T.
Retention money - a necessary evil or a pernicious device? - 2003 - Construction Law Bulletin March 2003, 21-23(3) .
Reports on the advantages and disadvantages of the retention system in the light of the release of the House of Commons' Trade and Industry Committee report "The use of retentions in the UK construction industry". Advantages highlighted include the provision of a fund for rectifying defects and an incentive to a contractor to remedy defects. Disadvantages include that a contractor may not be paid in full for satisfactory work and it may present cash-flow problems for a contractor. Alternatives such as bonds, guarantees and insurance were discarded and the committee concluded their use must continue until a viable replacement is devised.
RETENTIONS
BUILDING CONTRACTORS
DEFECTS LIABILITY
Retention money - a necessary evil or a pernicious device? - 2003 - Construction Law Bulletin March 2003, 21-23(3) .
Reports on the advantages and disadvantages of the retention system in the light of the release of the House of Commons' Trade and Industry Committee report "The use of retentions in the UK construction industry". Advantages highlighted include the provision of a fund for rectifying defects and an incentive to a contractor to remedy defects. Disadvantages include that a contractor may not be paid in full for satisfactory work and it may present cash-flow problems for a contractor. Alternatives such as bonds, guarantees and insurance were discarded and the committee concluded their use must continue until a viable replacement is devised.
RETENTIONS
BUILDING CONTRACTORS
DEFECTS LIABILITY